CN makes network investments to boost capacity, train velocity in Alberta rail corridors, double track key segments of its high-volume main line east of Edmonton, as it sees growing western Canadian freight volumes

EDMONTON , May 10, 2011 (press release) – CN (TSX:CNR.to - News)(NYSE:CNI - News) announced today major investments to double track key segments of its high-volume main line east of Edmonton, add capacity to its rail line to the oil sands region of northern Alberta, and improve velocity at its Walker Yard freight car classification facility in Edmonton.

Keith Creel, CN executive vice-president and chief operating officer, said: "CN is experiencing continued growth in Western Canadian freight volumes. We are making strategic rail investments in Alberta to increase network capacity and improve train velocity along our transcontinental main line between Edmonton and Winnipeg, and to be positioned to handle greater volumes of freight over our line to Fort McMurray, the gateway to Alberta's oil sands production region."

CN's capacity investments include:


- C$12 million to construct 3.5 miles of track between two sidings
located approximately 20 miles east of Edmonton on the Wainwright
Subdivision, creating 7.9 miles of double track. The new track will
help dispatchers to expedite the meeting of trains and to increase
train velocity on one of the highest-density corridors on the CN
system.

- C$12 million to build 11,400 feet of track east of Clover Bar yard on
the Wainwright Subdivision in the greater Edmonton area to facilitate
switching in the terminal. The additional track will help to expedite
arrivals and departures of freight trains at the yard.

- C$10 million on CN's secondary Lac La Biche Subdivision in northern
Alberta to support additional traffic to and from Fort McMurray. CN's
Fort McMurray yard gives customers direct rail access to the major
energy projects in development in the Athabasca, Peace River and Cold
Lake oil sands regions.

- C$3 million to reconfigure tracks at Walker Yard in Edmonton to
increase the velocity of the terminal in handling greater volumes of
freight traffic.

Creel said: "These investments will help CN handle rising traffic levels and deliver greater supply chain efficiencies. CN is committed to greater productivity and service innovation to help our customers compete more effectively in their end markets."

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